1. Beverly G. Baughman Assistant General Counsel Pfizer Inc June 7, 2007 “Selecting and Managing a Virtual Law Firm in Global Mass Tort Litigation”

2. Virtual Firm: What is it? Characteristics: Integrated group of law firms with expertise Represent same client in matters pending across several jurisdictions Work collaboratively with national, regional, and local firms and co- defendant Flexible organizational and management tool 2

3. Virtual Firm Selection: National Coordinating Counsel Direct line to client Quarterback, manager, director Ensures single, consistent litigation strategy Uses state-of-the art technology to cost-effectively manage multi-state litigation Important role in budget management 3

4. Virtual Firm Selection: Regional and Local Counsel 4 PA WV NJ Regional and Specialty Counsel Counsel organized geographically or by specialty –Case work-ups –Expert development and discovery –Trial counsel Local Counsel Key for hellhole jurisdictions (IL, MS, PA, NJ, WV) Politics play a key role IL MS

5. Virtual Firm Management: Cooperation is Key Key is to obtain talented lawyers with a cooperative spirit Can be challenging Selection process is key Reputation and track record are important Ask potential counsel what firms they would recommend 5

6. Virtual Firm Management: Budgeting

7. The 5 Step Budgeting Process: Step 1: S et the Budget Step 2: T rack Fees and Expenses Step 3: A nalyze Data Step 4: R espond to Challenges Step 5: R esults: Predictability and Savings 7

8. Setting the Budget: A 3-Step Process Assumptions Resources Cost What work needs to be done? Who will do the work? How much will it cost to pay for resources? 8

9. Tracking Litigation Fees and Expenses What to Track : Projected Costs Actual Costs Both Outside Counsel and Vendors Methods : Electronic Systems Inquiries to Counsel Monthly monitoring is key 9

10. Mass Tort: Litigation Tracking Tool 10

11. Mass Tort Budgeting: Analyze Data Identify variances Identify reasons of variances Collaboration between OC, house counsel and Legal Finance 11

12. Respond to Challenges Readjust Priorities/Strategy Readjust Timing of Work Readjust Workload Improved Management/Coordination Renegotiate Fee Arrangements Seek Alternative Counsel/Vendors 12

13. Predictability Year end budget goals and/or savings Early identification of problems (no surprises) Budgeting Results 13

14. Requires in-house and outside counsel commitment to: Adequate staffing / resources devoted to budget Budget tracking and analysis Monthly monitoring regime Results (cont’d) 14

15. The End